#THE CHUTIA NAGPUR ENCUMBERED ESTATES ACT, 1876 
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##ARRANGEMENT OF SECTIONS 
__________ 

###I.—PRELIMINARY. 

PREAMBLE. 
SECTIONS. 

1. Short title. 

###II.—VESTING ORDER. 

2. Power to vest management of property in an officer appointed by Commissioner. 

3. Effect of order. 
    Bar of suits. 
    Freedom from arrest. 
    Moveable property not liable to attachment for prior debts. 
    Cessation of power to alienate. 
    Immoveable property freed from attachment. 
    Cessation of power to contract. 

###III.—DUTIES OF MANAGER. 

4. Manager to receive rents and profits, and pay therefrom. 

  a. the Government demand, 
  b. rent due to superior landlord, 
  c. annual sum for maintenance of holder of property and his heir. 
  d. costs of repairs and improvements. 
  e. costs of management, and 
  f. the debts and liabilities. 

###IV.—SETTLEMENT OF DEBTS. 

5. Notice to claimants against holder of property. 
Notice how published. 

6. Claim to contain full particulars. 
Documents to be given up. 
Entries in books. 
Exclusion of documents not produced. 

7. Debt not duly notified to be barred. 
Provision for admission of claim within further period of nine months. 

8. Determination of debts. 

9. Power to inquire into consideration for leases. 
    Power to set aside leases. 

10. Appeal to Deputy Commissioner. 
Appeal to Commissioner. 

11. Scheme for settlement of debts. 
Power to return scheme for revision. 

12. Restoration of owner to his property. 
 Restoration of owner to his property. 
 Revival of barred proceedings and debts. 
 Reinstatement of mortgagees. 
 Period of limitation as to revived proceedings and debts. 

###V.—POWERS OF MANAGER. 

13. Power to call for further particulars. 

14. Power to summon witnesses and compel production of documents. 

15. Investigation to be deemed a judicial proceeding. 
      Statements of persons examined to be evidence. 

16. Manager to have powers of holder of estate. 
      Power to remove mortgagee or conditional vendee in possession. 

17. Power to lease. 

18. Power to raise money by mortgage or sale. 
  Manager’s receipts. 

###VI.—MISCELLANEOUS. 

19. Power to make rules. 

20. Power to appoint new Managers. 

21. Managers to be public servants. 

22. Bar of suits. 

23. Saving of jurisdiction of Courts in Chutia Nagpur in respect of certain suits. 

24. Act not to affect powers conferred by Bengal Act II of 1869. 

 

#THE CHUTIA NAGPUR ENCUMBERED ESTATES ACT, 1876 

###ACT NO. VI OF 1876 

[14th March, 1876.] 

An Act to relieve certain Landholders in Chutia Nagpur. 

**Preamble.**—WHEREAS it is expedient to provide for the relief of holders of land in Chutia Nagpur 
who may be in debt, and whose immoveable property may be subject to mortgages, charges and liens; It is 
hereby enacted as follows:— 

###I.—PRELIMINARY. 

1. **Short title.**—This Act may be called “The Chutia Nagpur Encumbered Estates Act, 1876.” 

###II.—VESTING ORDER. 

2. **Power to vest management of property in an officer appointed by Commissioner.**—Whenever 
any holder of immoveable property, or (when such holder is a minor, or of unsound mind, or an idiot) his 
guardian, committee or other legal curator, 

or the person who would be heir to such holder if he died intestate, 

or (when such person is a minor, or of unsound mind, or an idiot) his guardian, committee or other legal 
curator, 

or when any such property belonging to such holder has been attached in execution of a decree of a 
Civil Court, the Deputy Commissioner within whose jurisdiction such property is situate, 

applies in writing to the Commissioner, stating that the holder of the said property is subject to, or that 
his  said  property  is  charged  with,  debts  or  liabilities  other  than  debts  due,  or  liabilities  incurred,  to 
Government, and requesting that the provisions of this Act be applied to his case, 

the  Commissioner  may,  with  the  previous  consent  of  the  Lieutenant-Governor  of  Bengal,  by  order 
published in the Calcutta Gazette, appoint an officer (hereinafter called the Manager), and vest in him the 
management of the whole or any portion of the immoveable property of or to which the said holder is then 
possessed or entitled in his own right, or which he is entitled to redeem, or which may be acquired by or 
devolve on him or his heir, during the continuance of such management. 

3. **Effect of order.**—On the such publication the following consequences shall ensue:— 

**Bar of suits.**—First, all proceedings which may then be pending in any Civil Court in British India, in 
respect to such debts or liabilities, shall be barred; and all processes, executions and attachments for or in 
respect of such debts and liabilities shall become null and void; 

**Freedom from arrest.**—Secondly,  so  long  as  such  management  continues,  the  holder  of  the  said 
property and his heir shall not be liable to arrest for or in respect of the debts and liabilities to which the 
said holder was immediately before the said publication subject, or with which the property so vested as 
aforesaid  or  any  part  thereof  was  at  the  time  of  the  said  publication  charged,  other  than  debts  due,  or 
liabilities incurred, to Government, 

**Moveable property not liable to attachment for prior debts.**—nor shall their movable property be 
liable to attachment or sale, under process of any Civil Court in British India, for or in respect of such debts 
and liabilities other than as aforesaid; and 

**Cessation of power to alienate.** —*Thirdly*, so long as such management continues, 

  (a) the holder of the said immoveable property and his heir shall be incompetent to mortgage, charge, 
lease or alienate their immoveable property or any part thereof, or to grant valid receipts for the rents and 
profits arising or accruing therefrom, 

**Immoveable property freed from attachment.**—(b) such property shall be exempt from attachment 
or  sale  under  such  process  as  aforesaid  except  for  or  in  respect  of  debts  due,  or  liabilities  incurred,  to 
Government, and 

**Cessation of power to contract.**—(c) the holder of the same property and his heir shall be incapable 
of entering into any contract which may involve them, or either of them, in pecuniary liability. 

###III.—DUTIES OF MANAGER. 

4. **Manager to receive rents and profits,**—The Manager shall, during his management of the said 
immoveable  property,  receive  and  recover  all  rents  and  profits  due  in  respect  thereof;  and  shall,  upon 
receiving such rents and profits, give receipts for the same. 

From the sums so received, he shall pay— 

  **and pay therefrom the Government demand**, *First*, the Government revenue, and  all  debts  of 
liabilities for the time being due or incurred to Government; 

  **rent due to superior landlord**, *Secondly*, in  the  case  of  under-tenures,  the  rent  (if  any)  due  to  the 
superior landlord, in respect of the said property: 

  **annual sum for maintenance of holder of property and his heir**, *Thirdly*, such  annual  sums  as 
appears to the Commissioner requisite for the maintenance of the holder of the property, his heir, and their 
families: 

  **costs of repairs and improvements**, *Fourthly* the costs of such repairs and improvements of the 
property as appear necessary to the Manager and are approved by the Commissioner: 

  **cost of management and the debt and liabilities**, and the residue shall be applied in discharge of the 
costs of the management, and in settlement of such debts and liabilities of the holder of the property and 
his heir, as may be established under the provision hereinafter contained. 

###IV.—SETTLEMENT OF DEBTS. 

5. **Notice to claimant against holder of property.**—On the publication of the order vesting in him the 
management on the said property, the manager shall publish a notice in English, Urdu and Hindi, calling 
upon all persons having claims against the holder of the said property to notify the same in writing to such 
Manager within three months from the date of the publication. 

**Notice how published.**—Such notice shall be published by being posted at the kachahris in the district 
or districts in which the said property lies, and at such other places as the Manager thinks fit. 

6. **Claim to contain full particulars.** —Every such claimant shall, along with his claim present full 
particulars thereof. 

**Documents to be given up.**—Every document on which the claimant founds his claim, or on which he 
relies in support thereof, shall be delivered to the Manager along with the claim. 

**Entries in Books.**—If the document be an entry in any book, the claimant shall produce the book to 
the Manager, together with a copy of the entry on which he relies. The Manager shall mark the book for the 
purpose of identification, and, after examining and comparing the copy with the original, shall return the 
book to the claimant. 

**Exclusion of documents not produced.**—If any document in the possession or under the control of 
the claimant is not delivered or produced by him to the Manager along with the claim, the Manager may 
refuse to receive such document in evidence on the claimant's behalf at the investigation of the case. 

7. **Debt not duly notified to be barred.**—Every  debt  or  liability  other  than  debts  due,  or 
liabilities incurred, to Government or (in the case of under-tenures), the rent due to the superior landlord, 
to which the holder of the property is subject, or with which the property is charged, and which is not duly 
notified to the Manager within the time and in manner hereinbefore mentioned, shall be barred: 

**Provision for admission of claim within further period of nine months.**—Provided that, when proof 
is made to the Manager that the claimant was unable to comply with the provisions of sections five and six, 
the Manager may admit his claim within the further period of nine months from the expiration of the said 
period of three months. 

8. **Determination of debts.**—The Manager shall, in accordance with the rules to be made under this 
Act, determine the amount of all principal debts and liabilities justly due to the  several creditors of the 
holder of the property, and to persons holding mortgages, charges or liens thereon, and the interest (if any) 
due at the date of such determination, in respect of such debts and liabilities. 

9. **Power to inquire into consideration for leases.**—If such property or any part thereof be in the 
possession  of  any  person  claiming  to  hold  it  under  a  lease, dated  within  the  three  years  immediately 
preceding  the  publication of  the  order  mentioned in  section  two, the  Manager, with the sanction  of  the 
Deputy Commissioner and Commissioner (or of the Commissioner only if the Deputy Commissioner be 
himself the Manager), may inquire into the sufficiency of the consideration for which the lease was given; 

**Power to set aside leases.**— and, if such consideration appears to him insufficient, may by order either 
set aside the lease or cause the person so in possession to pay such consideration for the said lease as the 
Manager thinks fit, and in default of such payment the lease or shall be cancelled. 

10. **Appeal to Deputy Commissioner.** –-An appeal against any refusal, admission, determination or 
order under section six, seven, eight or nine shall lie, if preferred within six weeks from the date thereof to 
the Deputy Commissioner within whose jurisdiction the property is situate, and the decision of the manager, 
if no such appeal has been so preferred, shall be final: 

Provided  that,  if  the  Deputy  Commissioner  be  himself  the  Manager,  the  appeal  shall  lie  to  the 
Commissioner. 

**Appeal to commissioner.**—An  appeal  shall  lie  from  any  decision  of  the  Deputy  Commissioner,  if 
preferred  within  six  weeks  of  the  date  of  his  decision,  to  the  Commissioner,  and  the  decision  of  such 
Commissioner, or of the Deputy Commissioner if no such appeal has been so preferred, shall be final. 

11. **Scheme for settlement of debts.**—When the  amount  due in  respect  of the debts  and  liabilities 
mentioned  in  section  eight  has  been  finally  determined,  the  Manager  shall  prepare  and  submit  to  the 
Commissioner a schedule of such debts and liabilities, and a scheme for the settlement thereof; and such 
scheme, when approved by the Commissioner, shall be carried into effect. 

**Power to return scheme for revision.**—Until such approval is given, the Commissioner may, as often 
as he thinks fit, send back such scheme to the Manager for revision, and direct him to make such further 
inquiry as may be requisite for the proper preparation of the scheme. 

12. **Restoration of owner to his property.**—When all such debts and liabilities have been discharged, 

or if, within six months after the publication of the order mentioned in section two, the Commissioner 
thinks that the  provisions of this  Act  should  not continue to apply to the  case of the holder  of  the said 
property or his heir, 

such holder or his heir shall be restored to the possession and enjoyment of the property, or of such part 
thereof as has not been sold by the Manager under the power contained in section eighteen, but subject to 
the leases and mortgages (if any) granted and made by the Manager under the powers hereinafter contained. 

**Restoration  to  be  notified.  Revival  of  barred  proceedings  and  debts.  Reinstatement  of 
mortgagees.**—Where  the  holder  of  the  property  or  his  heir  is  so  restored  under  the  circumstances 
mentioned in the second clause of this section, such restoration shall be notified in the *Calcutta Gazette*, and 
thereupon the proceedings, processes, executions, any attachments mentioned in  section three (so far as 
they relate to debts and liabilities which the Manager has not paid off or compromised), and the debts and 
liabilities barred by section seven, shall be revived; and any mortgagee or conditional vendee dispossessed 
under section sixteen shall be reinstated, unless his claim under the mortgage or conditional sale has been 
satisfied; 

**Period of limitation as to revived proceedings and debts.**—and  in  calculating  the  periods  of 
limitation applicable to such revived proceedings, and to suits to recover and enforce such revived debts 
and liabilities, the time intervening between such restoration and the publication of the order mentioned in 
section two, shall be excluded. 

###V.—POWERS OF MANAGER. 

13. **Power to call for further particulars.** —The manager may, from time to time, call for further and 
more detailed particulars of any claim preferred before him under this Act, and may at his discretion refuse 
to proceed with the investigation of the claim until such particulars are supplied. 

14. **Power to summon witnesses and compel production of documents.**—For the purposes of this 
Act, the Manager may summon and enforce the attendance of witnesses and compel them to give evidence, 
and compel the production of documents by the same means, and, as far as possible, in the same manner, 
as is provided in the case of a Civil Court by the Code of Civil Procedure. 

15. **Investigation to be deemed judicial proceeding.**—Every investigation conducted by the Manager 
with reference to any claim preferred before him under this Act, or to any matter connected with any such 
claim, shall be taken to be a judicial proceeding within the meaning of the Indian Penal Code. 

**Statements  of  persons  examined  to  be  evidence.**—And  every  statement  made  by  any  person 
examined by or before the Manager with reference to such investigation, whether upon oath or otherwise, 
shall be taken to be evidence within the meaning of the same Code. 

16. **Manager  to  have  powers  of  holder  of  estate.**—The  Manager  shall  have,  for  the  purpose  of 
realizing and recovering the rents and profits of the said immovable property, the same powers as the holder 
of the property would have had for such purpose if this Act had not been passed. 

**Power to remove mortgagee or conditional vendee in possession.**—And if such property, or any part 
thereof, be in the possession of any mortgagee or conditional vendee, the Manager may apply to the Court 
of the Deputy Commissioner within whose jurisdiction the property is situate, and such Court shall cause 
the same to be delivered to the Manager as if a decree therefor had been made in his favour, but without 
prejudice to the mortgagee or vendee preferring his claim under the provisions hereinbefore contained. 

17. **Power to lease.**—Subject to the rules made under Section 19, the Manager shall have power to 
demise all or any part of the property under his management for any term of years not exceeding twenty 
years absolute, to take effect in possession in consideration of any fine or fines, or without fine and reserving 
such rents and under such conditions as may be agreed upon. 

18. **Power to raise money by mortgage or sale.**—The  Manager,  with  the  previous  assent  of  the 
Commissioner, shall have power to raise any money which may be required for the settlement of the debts 
and liabilities (other than as aforesaid) to which the holder of the property is subject, or with which such 
property or any part thereof is charged, 

by demising by way of mortgage the whole or any part of such property for a term not exceeding twenty 
years from the said publication, 

or by selling, with the previous consent of the holder of the property and of the person (being of full 
age) who would be his heir if he died intestate, by public auction or by private contract, and upon such 
terms as the Manager thinks fit, such portion of the same property as may appear expedient. 

And no mortgagee advancing money upon any mortgage made under this section, shall be bound to see 
that such money is wanted, or that no more than is wanted is raised. 

**Manager’s receipts.**—And  the  receipt  of  the  Manager  for  any  monies  paid  to  him  as  such,  shall 
discharge the person paying the same therefrom and from being concerned to see to the application thereof. 

The power to mortgage conferred by this section shall not be exercisable until six months have elapsed 
from the publication of the order mentioned in section two. 

###VI.—MISCELLANEOUS. 

19. **Power to make rules.**—The Lieutenant-Governor of Bengal may, from time to time, make rules 
consistent with this Act to regulate the following matter:— 

  (a) the security to be required from subordinate officers under this Act, 

  (b) the notices to be given under this Act and the publication of such notices, 

  (c) the procedure to be followed in determining under section eight the debts and liabilities due to 
creditors and other persons, and in performing the other duties imposed on any officer by this Act, 

  (d) the allowance of interest on each of the principal debts and liabilities so determined, from the 
date on which it was incurred down to the date of the determination, and on the aggregate amount of 
such debts and liabilities from the date of the determination down to the date of payment, 

  (e) the order of paying debts and liabilities so determined; 

and generally for the guidance of officers in all matters connected with the enforcement of this Act. 

Such  rules,  when approved  by  the  Governor  General  in  Council  and  published  in  the *Calcutta 
Gazette*, shall have the force of law. 

20. **Power to appoint new Managers.**—Whenever the Commissioner thinks fit, he may appoint any 
officer to be a Manager instead of any Manager appointed under this Act; and thereupon the property then 
vested under this Act in the former Manager shall become vested in the new Manager. 

Every such new Manager shall have the same powers as if he had been originally appointed. 

21. **Managers to be public servants.**—Every Manager appointed under this Act shall be deemed a 
public servant within the meaning of the Indian Penal Code. 

22. **Bar of suits.**—No suit or other proceeding shall be maintained against any person in respect of 
anything done by him *bona fide* pursuant to this Act. 

23. **Saving of jurisdiction of Courts in Chutia Nagpur in respect of certain suits.**—Nothing in this 
Act  precludes  the  Courts  in  Chutia  Nagpur  having  jurisdiction  in  suits  relating  to  the  succession  to,  or 
claims  of  maintenance  from,  any  immoveable  property  brought  under  the  operation  of  this  Act,  from 
entertaining and disposing of such suits; but to all such suits the Manager of such property shall be made a 
party. 

24. **Act not to affect powers conferred by Bengal Act II of 1869.**—Nothing  in  this  Act  shall  be 
deemed to take away or abridge any power or authority conferred by an Act passed by the Lieutenant-
Governor of Bengal in Council, entitled “An Act to ascertain, regulate and record certain tenures in Chutia 
Nagpur,” on any person appointed to be a Special Commissioner thereunder, or on the Commissioner of 
the division of Chutia Nagpur.